The Neonode N2

This tiny, touchscreen phone could challenge the iPhone. The Neonode N2 is a 4-band world phone that's smaller than a credit card. It holds up to 32 GB of music, images, and videos. It also has the most advanced touchscreen available, and has no buttons. Everything happens on the screen and slidebars.

"Neonode N2 is designed for advanced simplicity. You do everything on-screen, simply and conveniently, with just one finger," Infibeam says. "The combination of an optical touch screen and specially designed user interface makes access to all features and content of your Neonode N2 both quick and easy."

The under-25 crowd want iPhone capabilities in their pockets or tiny purses, so this could be the answer.

Want to get one cheap? One option is to buy some stock, then buy the phone as at shareholder pricing.

The company's stock is a bargain at less than $0.30 a share. Shareholder can buy the phone (regularly $427) for $199.